GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - NYSE:GVA - US3873281071 - Common Stock
102.4 USD
-0.12 (-0.12%)
102.4 USD
0 (0%)
Taking everything into account, GVA scores 6 out of 10 in our fundamental rating. GVA was compared to 55 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. GVA is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make GVA a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year GVA was profitable.
In the past year GVA had a positive cash flow from operations.
GVA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years GVA had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.10%, GVA is doing good in the industry, outperforming 61.82% of the companies in the same industry.
With a decent Return On Equity value of 14.91%, GVA is doing good in the industry, outperforming 67.27% of the companies in the same industry.
GVA has a Return On Invested Capital (6.48%) which is in line with its industry peers.
GVA had an Average Return On Invested Capital over the past 3 years of 3.67%. This is significantly below the industry average of 17.19%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 14.91% | ||
| ROIC | 6.48% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.89%, GVA is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
GVA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.33%, GVA is in line with its industry, outperforming 52.73% of the companies in the same industry.
With a Gross Margin value of 15.61%, GVA perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.33% | ||
| PM (TTM) | 3.89% | ||
| GM | 15.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GVA is destroying value.
The number of shares outstanding for GVA has been reduced compared to 1 year ago.
The number of shares outstanding for GVA has been reduced compared to 5 years ago.
The debt/assets ratio for GVA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.38 indicates that GVA is not in any danger for bankruptcy at the moment.
GVA's Altman-Z score of 3.38 is in line compared to the rest of the industry. GVA outperforms 58.18% of its industry peers.
The Debt to FCF ratio of GVA is 2.40, which is a good value as it means it would take GVA, 2.40 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.40, GVA is doing good in the industry, outperforming 72.73% of the companies in the same industry.
GVA has a Debt/Equity ratio of 0.69. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. GVA outperforms 50.91% of its industry peers.
Although GVA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.66
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.57 indicates that GVA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, GVA is in the better half of the industry, outperforming 74.55% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that GVA should not have too much problems paying its short term obligations.
GVA's Quick ratio of 1.45 is fine compared to the rest of the industry. GVA outperforms 74.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.63% over the past year.
The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
Looking at the last year, GVA shows a small growth in Revenue. The Revenue has grown by 7.18% in the last year.
Measured over the past years, GVA shows a small growth in Revenue. The Revenue has been growing by 6.57% on average per year.
EPS 1Y (TTM)59.63%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%98.97%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.02%
3.2 Future
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 21.70% on average per year.
The Revenue is expected to grow by 9.43% on average over the next years. This is quite good.
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.62, the valuation of GVA can be described as rather expensive.
GVA's Price/Earnings ratio is rather cheap when compared to the industry. GVA is cheaper than 87.27% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. GVA is valued slightly cheaper when compared to this.
GVA is valuated correctly with a Price/Forward Earnings ratio of 15.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 92.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, GVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 15.97 |
4.2 Price Multiples
83.64% of the companies in the same industry are more expensive than GVA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GVA is valued cheaply inside the industry as 83.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.51 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GVA may justify a higher PE ratio.
GVA's earnings are expected to grow with 21.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)0.6
EPS Next 2Y26%
EPS Next 3Y21.7%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.51%, which is pretty low.
GVA's Dividend Yield is rather good when compared to the industry average which is at 1.73. GVA pays more dividend than 87.27% of the companies in the same industry.
With a Dividend Yield of 0.51, GVA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has paid a dividend for at least 10 years, which is a reliable track record.
GVA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
GVA pays out 14.32% of its income as dividend. This is a sustainable payout ratio.
DP14.32%
EPS Next 2Y26%
EPS Next 3Y21.7%
102.4
-0.12 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.34%
Inst Owner Change-0.92%
Ins Owners1.11%
Ins Owner Change-0.34%
Market Cap4.48B
Revenue(TTM)4.08B
Net Income(TTM)158.48M
Analysts80
Price Target134.64 (31.48%)
Short Float %9.07%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP14.32%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.51%
Min EPS beat(2)12.74%
Max EPS beat(2)102.29%
EPS beat(4)2
Avg EPS beat(4)23.24%
Min EPS beat(4)-17.71%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)13.65%
EPS beat(12)7
Avg EPS beat(12)-124.98%
EPS beat(16)7
Avg EPS beat(16)-115.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)1.65%
Revenue beat(12)6
Avg Revenue beat(12)0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.01%
PT rev (1m)2.06%
PT rev (3m)29.73%
EPS NQ rev (1m)-3.72%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)5.79%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 15.97 | ||
| P/S | 1.1 | ||
| P/FCF | 14.51 | ||
| P/OCF | 10.2 | ||
| P/B | 4.22 | ||
| P/tB | 6.19 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)5.22
EY5.1%
EPS(NY)6.41
Fwd EY6.26%
FCF(TTM)7.06
FCFY6.89%
OCF(TTM)10.04
OCFY9.81%
SpS93.13
BVpS24.27
TBVpS16.54
PEG (NY)0.51
PEG (5Y)0.6
Graham Number53.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 14.91% | ||
| ROCE | 10.71% | ||
| ROIC | 6.48% | ||
| ROICexc | 8.82% | ||
| ROICexgc | 11.41% | ||
| OM | 5.33% | ||
| PM (TTM) | 3.89% | ||
| GM | 15.61% | ||
| FCFM | 7.58% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 98% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 125.42% | ||
| Profit Quality | 195.06% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.38 |
F-Score7
WACC9.86%
ROIC/WACC0.66
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.63%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%98.97%
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue 1Y (TTM)7.18%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.02%
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y94.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.85%
EBIT Next 3Y40.86%
EBIT Next 5YN/A
FCF growth 1Y450.89%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y999.24%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 8 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Undervalued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 19.62 and the Price/Book (PB) ratio is 4.22.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 14.32%.